IMPACT OF MOBILE BANKING ON CUSTOMER’S SATISFACTION IN TIRUCHIRAPPALLI TOWN

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IMPACT OF MOBILE BANKING ON CUSTOMER’S
SATISFACTION IN TIRUCHIRAPPALLI TOWN
Dr. S. SUBATHRA
Assistant Professor
PG & Research Department of Commerce
Holy Cross College (Autonomous), Tiruchirappalli-2
ABSTRACT
In today’s digital era, many banks are offering its
services through impressive apps. That is known as mobile
banking. Smartphone or tablet are used as mobile device, to
access and manage one’s banking accounts. Mobile banking
requires proper speed of internet connection from network
provider. The mobile banking transactions should be protected
through password which is created by customers. They need not
to visit bank or ATM, they can use mobile banking apps as
convenient and secure way to manage their various financial
transactions. With the help of mobile banking, banking customers
can able to transfer funds to others, verify everyday transaction
history, recharge their phones, book train or flight tickets and also
pay their utility bills. Even though mobile banking applications
allows a customer to do banking transactions individually, they
are getting fear about safety and security. This study analyses the
problems faced by the customer and remedies to overcome from
these types of issues. And also examines the level of satisfaction
when they are using the mobile banking services.
Keywords: Mobile banking, Financial transactions, Transfer
funds, Satisfaction level, Problems faced and Accepted
suggestions

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INTRODUCTION
Now-a-days mobile phone apps play a very significant
role for developing business and services and satisfying
customer’s wants and needs in this digital world. Banks also
provide its services through mobile phone apps in a protected way
that are known as mobile banking. Mobile banking offers the
ability to bank anywhere and at any time. It is more comfortable
and convenient to the customers for doing banking transactions
through their mobile phones. To access financial transactions at
one’s own account, banking customers need Smartphone or
Tablet with internet facility. In this platform customers can use
their password to access the account and they can easily transfer
their money to others, check account balances and pay utility
bills. Even though mobile banking apps provided in a protected
way and designed to customize for meeting specific needs of
customers, customers can fear about hacking and unsafe of data.
This study have been undertaken to know the impact of mobile
banking on customer’s satisfaction.
REVIEW OF LITERATURE
Jie Yu and Chompu Nuangjamnong (May-June 2012) had
pointed out that different banks have different technologies and
service standards, thus affecting customer satisfaction levels, so
the factors of the survey are also limited. It concluded that the
factors such as speed of transactions, accessibility, affordability,
adaptability, ease of use, and relative advantage of mobile
banking affect customer satisfaction, so banks need to pay more
attention to these related factors because customers have too
many choices and can one or several unfavorable factors may
change customers to use other methods of transactions. Only by
improving customer satisfaction can customers be guaranteed to
use mobile banking for lasting reasons.
Tukhrejul Inam and Baharul Islam (May 2013) had outlined
that most people in Bangladesh live in rural areas and almost
every family use at least one mobile phone. So, mobile phone is

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an important device to provide service to them. Almost all banks
are trying to provide financial service to maximum people
through mobile phone and it’s becoming familiar as mobile
banking. It described the present condition of mobile banking in
Bangladesh and technical architecture of mobile banking. It
concluded that handset operability and security and One-time
passwords were the challenges faced by the people in Bangladesh
while using mobile banking.
Sonal Purohit and Rakhi Arora (2021) had specified that
banking is often considered to be out of range of the poor people
due to certain limitations of time, infrastructure and other
resources. Mobile banking can provide a potential solution to
these limitations and offer convenient, flexible banking to the
Balance of the Pyramid (BoP) customers thus bringing them in
the financial mainstream. The benefits of convenience and cost
can be achieved from the mobile banking as these services can
match the customer’s location thus resulting in cost saving.
Concerning immediacy, time and accessibility, mobile phones
enhance the mobility of consumers, offering opportunities to
access, share or exchange information in transactions at a distance
and on time. The outcome of which is the decreased travel cost.
The mobile banking can help the BoP in keeping a track on their
expenses, the balances and pending transactions in real time
through mobile phones.
OBJECTIVES OF THE STUDY
1. To know the impact of mobile banking on customer’s
satisfaction in Tiruchirappalli town.
2. To analyze the problems faced by banking customers
while using mobile banking.
SCOPE OF THE STUDY
The scope of the study is limited to collecting data which
is filled by the respondents through Google form. The analysis is
done to impact of mobile banking on customer’s satisfaction.
This study examined the main purpose of using mobile banking

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and problems faced by the respondents while using mobile
banking in Tiruchirappalli town. It took into consideration of
mobile banking users of all status like student, home maker and
business doers.
RESEARCH METHODOLOGY
The present study is descriptive and analytical in nature by
using both primary and secondary data. Primary data were
collected with the help of structured questionnaire framed in
Google form. The link was sent through Whatsapp and mail to
various groups of people like student, home-maker and business
doers. Five point Likert scale had been used ranging from
strongly agree to strongly disagree to measure the level of
satisfaction and problems faced by them when using mobile
banking. The data have been collected by the accepted response
of 121 samples and analyzed with the help of simple percentage
distribution, correlation and rank correlation test using SPSS
package. Secondary data were collected from the various books,
journals and websites.
LIMITATIONS OF THE STUDY
 This study is analyzed on the basis of response given by
respondents.
 Irrespective of status of respondents like student, home-
maker and business doers those who are using mobile
banking can consider.
DATA ANALYSES AND INTERPRETATION
Table 1
Reliability Statistics
Cronbach’s Alpha No. of Item
0.948 13
Source: Primary data
Table 1 shows the reliability statistics of variables. Variables of
main purpose, satisfaction level, problems faced by respondents
while using mobile banking had been taken to test validity. The
13 items have a Cronbach’s Alpha coefficient of 0.948 indicating

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that they have a high level of internal consistency. The
questionnaire is reliable though it has a reliability coefficient
(0.948) of 0.70 or above, which is regarded as “acceptable”.
Table 2
Demographic Profile of the Respondents
Options Frequencies Percentage
Gender
Female 117 96.7%
Male 04 3.3%
Age
Below 20 74 61.2%
20-30 42 34.7%
30-40 1 0.8%
40-50 3 2.5%
Above 50 1 0.8%
Education
10th
Standard 2 1.7%
12th
Standard 57 47.1%
Graduate 48 39.7%
Post graduate 10 8.3%
Diploma 1 0.8%
Doctorate 1 0.8%
Others 2 1.7%
Occupation
Student 110 90.9%
Home maker 3 2.5%
Private
employee
4 3.3%
Self
employed
4 3.3%
Knew about
mobile
banking
Through
Bank itself 25 20.7%
Friends 17 14%
Internet 68 56.2%
Newspaper 1 0.8%
Others 10 8.3%
To know the
account
20 16.5%

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Main
purpose of
using mobile
banking
balance
update
To transfer
money
69 57%
To buy
goods and
services
21 17.4%
To pay
utilities
11 9.1%
Type of
mobile
phone
Android 111 92.7%
Iphone 10 8.3%
Type of
network
using
Airtel 34 28.1%
Vodafone 12 9.9%
Jio 64 52.9%
BSNL 6 5%
Idea 3 2.5
Others 2 1.7%
Source: Primary data
N = 121
Table 2 shows that demographic profile of the
respondents. It clearly showed that 96.7 percent of the
respondents were female and 3.3 percent were male.
The above table indicated that 61.2 percent of the
respondents were in the age group of below 20, 34.7 percent were
in the age group of 20 to 30, 0.8 percent were in 30 to 40, 2.5
percent were in 40 to 50 and 0.8 percent were in the age group of
above 50.
The above table mentioned that 1.7 percent of the
respondents had 10th
standard as highest educational qualification,
47.1 percent had 12th
standard as highest educational
qualification, 39.7 percent are graduates, 8.3 percent were
completed their post graduation, 0.8 percent had Diploma, 0.8 had
Doctorate as highest educational qualification and 1.7 percent had

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other than mentioned variable as highest educational
qualification.
The above table stated that 90.9 percent of the respondents
were student but they are using mobile banking, 2.5 percent were
home maker, 3.3 percent were private employees and 3.3 percent
were self employed that is sole proprietors.
The above table pointed out that 20.7 percent of the
respondents knew about mobile banking from bank itself, 14
percent knew from their friends, 56.2 percent knew through
internet, 0.8 percent knew from newspaper and 8.3 percent of the
respondents were knew about mobile banking from others.
The above table shows the main purpose using mobile
banking. It found that 16.5 percent of the respondents are using
mobile banking for the purpose of knowing the account balance
update, 57 percent are using to transfer money to others, 17.5
percent are using to buy goods or services and 9.1 percent of the
respondents are using mobile banking for the purpose of paying
their utilities.
The above table specified that 92.7 percent of the
respondents are using android type of mobile phone and 8.3
percent of them are using iphone.
The above table indicated that 28.1 of the respondents are
using Airtel network, 9.9 percent of them are using Vodafone
network, 52.9 percent of them are using Jio network, 5 percent of
them are using BSNL network, 2.5 percent of them are using Idea
network and 1.7 of them are using other type of network.
Table 3
Frequency Analysis of Satisfaction level
Stron
gly
agree
Agre
e
Neut
ral
Disag
ree
Stron
gly
Disag
ree
Saves
time
73
(60.3
41
(33.9
5
(4.1%
2
(1.7%)

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Satisfact
ion level
on using
Mobile
banking
%) %) )
24X7
hours
availabilit
y
71
(58.7
%)
39
(32.2
%)
9
(7.4%
)
2
(1.7%)
Easy
process
51
(42.1
%)
59
(48.8
%)
9
(7.4%
)
2
(1.7%)
Safety
and
security
22
(18.2
%)
50
(41.3
%)
43
(35.5
%)
5
(4.1%)
1
(0.9%)
Less cost 23
(19%)
64
(52.9
%)
30
(24.8
%)
4
(3.3%)
No need
to visit
bank
54
(44.6
%)
52
(42.9
%)
12
(9.9%
)
2
(1.7%)
1
(0.9%)
Problem
s faced
while
using
Mobile
banking
Processin
g charge
33
(27.3
%)
51
(42.1
%)
33
(27.3
%)
3
(2.4%)
1
(0.9%)
Informati
on
Hacking
27
(22.3
%)
52
(42.9
%)
33
(27.3
%)
8
(6.6%)
1
(0.9%)
Internet
slow
33
(27.3
%)
51
(42.1
%)
31
(25.6
%)
4
(3.3%)
2
(1.7%)
Unaware
of mobile
banking
applicatio
n
14
(11.6
%)
50
(41.3
%)
40
(33.1
%)
13
(10.7
%)
4
(3.3%)
Transacti
onal risk
25
(20.7
54
(44.5
33
(27.3
8
(6.6%)
1
(0.9%)

9. Banking Innovation ISBN 978-93-93996-89-3 274
%) %) %)
Consume
s more
time
9
(7.4%)
43
(35.6
%)
40
(33%
)
23
(19%)
6
(5%)
Accepti
ng
suggesti
ons to
improve
Mobile
banking
Increase
awarenes
s
49
(40%)
60
(50%
)
11
(9.2%
)
1
(0.8%)
Free
demo by
banks
45
(37.1
%)
59
(48.9
%)
15
(12.3
%)
2
(1.7%)
Reduce
transactio
nal risk
46
(38%)
52
(43%
)
20
(16.5
%)
3
(2.5%)
Free from
hacking
48
(40%)
46
(38%
)
21
(17.4
%)
6
(4.8%)
High
internet
speed
54
(44.6
%)
48
(39.7
%)
14
(11.6
%)
4
(3.3%)
1
(0.8%)
Source: Primary data
N = 121
Table 3 shows the frequency analysis of satisfaction level
on using Mobile banking. It clearly showed that 73 respondents
strongly agree that the usage of mobile banking saves their time,
41 respondents agree that the statement saves time, 5 respondents
stated neutral for the statement, 2 respondents expressed that they
were disagree the statement of saves time.
The above table pointed out that 71 respondents are
strongly agree that mobile banking is 24X7 hours available, 39
respondents are agree the statement, 9 respondents are neutral for
the statement and 2 respondents are disagree the statement.
The above table indicated that 51 respondents are strongly
agree that mobile banking is easy process, 59 respondents are

10. Banking Innovation ISBN 978-93-93996-89-3 275
agree the statement, 9 respondents are neutral for the statement
and 2 respondents are disagree the statement.
The above table specified that 22 respondents are strongly
agree that mobile banking provides safety and security, 50
respondents are agree the statement, 43 respondents are neutral
for the statement, 5 respondents are disagree the statement and 1
respondent strongly disagree the statement mobile banking
provides safety and security .
The above table showed that 23 respondents are strongly
agree that the usage of mobile banking reduced cost, 63
respondents are agree the statement, 30 respondents are neutral
for the statement and 4 respondents are disagree the statement.
The above table indicated that 54 respondents are strongly
agree that because of mobile banking, there is no need to visit
bank, 52 respondents are agree the statement, 12 respondents are
neutral for the statement, 2 respondents are disagree the statement
and 1 respondent strongly disagree the statement.
The most of the respondents (51) agree that processing
charge is one of the problem facing while using mobile banking.
The most of the respondents (52) agree that they feared about
information hacking. The most of the respondents (51) agree that
there is slow internet service when they used mobile banking. The
most of the respondents (50) agree that they were unaware of
mobile banking applications. The most of the respondents (54)
agree that they faced transactional risk. The most of the
respondents (43) agree that mobile banking process consumed
more time.
The most of the respondents (60) agree that they wanted to
increase the awareness about mobile banking application and
process. The most of the respondents (59) agree that they needed
free demo about mobile banking which is to be provided by
banks. The most of the respondents (52) agree that they wanted to
reduce the transactional risk when they processing mobile
banking. The most of the respondents (48) strongly agree that free

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from hacking is to assured by the banks. The most of the
respondents (54) strongly agree that there would be needed high
internet speed.
CORRELATION ANALYSIS
Ho: There is no significant relationship between purpose of using
mobile banking and types of network using.
Ha: There is a significant relationship between purpose of using
mobile banking and types of network using.
Table 4
Correlation between purpose of using mobile banking and
types of network using
Descriptive statistics
Mean Standard
Deviation
No.
Purpose of using
mobile banking
2.2893 0.85086 121
Types of network
using
2.4876 1.12632 121
Correlation Test
Pearson correlation
Sig. (2-tailed)
Purpose of using
mobile banking
Types of network
using
Purpose of using
mobile banking
1 0.817
Types of network
using
0.817 1
Correlation is significant at the 0.01 level
Table 4 Descriptive statistics shows that the mean and
standard deviation of purpose of using mobile phone are 2.2893
and 0.85086 and types of network using are 2.4876 and 1.12632.
Pearson correlation was used to test null hypothesis, there
is no significant relationship between purpose of using mobile
banking and types of network using. It reveals that (r = 0.817, p <
0.01) p value is lesser than calculated value. So, null hypothesis is
rejected. It is concluded that there is a significant relationship

12. Banking Innovation ISBN 978-93-93996-89-3 277
between purpose of using mobile banking and types of network
using.
PARTIAL RANK CORRELATION ANALYSIS
Ho: There is no significant relationship between problems faced
by the respondents and purpose of using mobile banking.
Ha: There is a significant relationship between problems faced by
the respondents and purpose of using mobile banking.
Controlling variable: Purpose of using mobile banking
Table 5
Partial Rank Correlation between problems faced by the
respondents and purpose of using mobile banking
Descriptive Statistics
Mean Standard
Deviation
No.
Purpose of using mobile
banking
2.2893 0.85086 121
Processing charge 3.9256 0.84819 121
Information hacking 3.7934 0.89366 121
Internet slow 3.9008 0.89819 121
Unaware of mobile banking
application
3.4711 0.94934 121
Transactional risk 3.6942 0.90225 121
Consumes more time 3.2149 1.00172 121
Partial Rank Correlation Test
Proces
sing
charge
Inform
ation
hacking
Inter
net
slow
Unawa
re of
mobile
bankin
g
applica
tion
Transact
ional
risk
Consu
mes
more
time
Processi
ng
charge
0.636 0.94
0
0.335 0.444 0.482

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Informat
ion
hacking
0.636 0.63
7
0.216 0.611 0.326
Internet
slow
0.940 0.637 0.339 0.436 0.523
Unaware
of
mobile
banking
applicati
on
0.335 0.216 0.33
9
0.455 0.567
Transact
ional
risk
0.444 0.611 0.43
6
0.455 0.368
Consum
es more
time
0.482 0.326 0.52
3
0.567 0.368
Correlation is significant at the 0.01 level
Control variables: Purpose of using mobile banking
Table 5 shows the Partial rank correlation between
purpose of using mobile banking and problem faced by the
respondents. Purpose of using mobile banking variables
considered as control variable. It reveals that(r = 0.636, 0.940,
0.444, 0.482, 0.637, 0.611, 0.326, 0.940, 0.637, 0.339, 0.436,
0.523, 0.335, 0.216, 0.339, 0.455, 0.567, 0.444, 0.611, 0.436,
0.455, 0.368, 0.482, 0.326, 0.523, 0.567, p = 0.01) p value is
lesser than calculated value in all the variables of problems faced
by the respondents. So, null hypothesis is rejected. It is concluded
that there is a significant relationship between problems faced by
the respondents and purpose of using mobile banking.
FINDINGS
The majority of the respondents are: female (96.7%), in
the age group of below 20 (61.2%), having the highest education
qualification as 12th
standard (47.1%), the students using their

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parent’s money for mobile banking (90.9%), knowing about
mobile banking from the internet (56.2%), using the mobile
banking mainly to transfer money (57%), having android type of
mobile phone (92.7%) and using Jio network (52.9%).
The majority of the respondents are: strongly agree that
the usage of mobile banking - saves time (73), 24X7 hours
availability (71), no need to visit bank (54), agree that the usage
of mobile banking provides - easy process (59), safety and
security (50) and Less cost (64).
The majority of the respondents are: agree that the
problems faced by them were: processing charge (51),
information hacking (52), internet slow (51), unaware of mobile
banking application (50), Transactional risk (54) and consumes
more time (43).
The majority of the respondents are: strongly agree that
the accepted recommendations for improvement of mobile
banking as free from hacking (48) Free from hacking (54), agree
that they need to be increase awareness (60), free demo by banks
(59) and reduce transaction risk (52).
Correlation analysis found out that there is significant
relationship between purpose of using mobile banking and types
of network using.
Partial rank correlation analysis considered purpose of
using mobile banking as controlling variable, showed the result
that there is a significant relationship between problems faced by
the respondents and purpose of using mobile banking.
SUGGESTIONS
This study analyzed the impact of mobile banking on
customer’s satisfaction in Tiruchirappalli town. Most of the
respondents are used mobile banking to save time and for
transferring money to others. If the process should be easy, then
only they can continue to use mobile banking services. The
banker should provide simpler process in the apps itself. Many
respondents pointed out that they are using Jio network. If the

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other network provider offered high speed of network they can
easily attract more mobile banking users. The banker should be
provided the free demo about how to use mobile banking in
different transactions. They should take steps to reduce the
transactional risk which is faced by the customers when they use
mobile banking.
CONCLUSION
In this research, it is found that the banking customers in
Tiruchirappalli town are very much satisfied by using mobile
banking services which is provided by banks. They availed 24X7
hours facility with safely, securely and also with less cost. They
realized that the process of mobile banking is easy and it saves
their time. The correlation analysis depicted that there is a
significant relationship between purpose of using mobile banking
and type of network using and problems faced by the respondents.
They faced the problems like unaware of mobile banking
applications, transactional risk and high processing charge. They
feared about information hacking. The banker should provide
awareness regarding how to protect data and save information
while using mobile banking. The bankers clearly explained about
the process of mobile banking when they installed the apps in the
mobile. But they need assistance when they are using the apps.
The free demos will help the customers to know the process and
easy handling of transactions. This study concluded that mobile
banking services fulfill the customers’ needs and they are
satisfied about the usage of mobile banking.
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